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Doubling your income may seem a lofty goal for some brokers, as the immediate thought is that you need to double the number of loan conversions to double your income.
Most brokers assume they will need to increase their working hours and spend more on marketing to double their income. If you keep doing what you have always done, you will make hard work of it and will most likely miss out on some excellent opportunities.
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The solution to doubling your income may be a lot simpler than you realise and is most likely sitting right under your nose.
How to double your income
Mortgage brokers are in a prime position to form a cross-referral alliance with an off-the-plan property specialist to create mutual benefit for each other and their respective clients. As a broker, you refer your potential property buyers to a property specialist that provides a quality new property to your client and in return your new property alliance partner refers their clients to you for new loans.
In addition, you may also be given a marketing fee for introducing a new property buyer if this is something you are comfortable receiving. This marketing fee can in many cases be a lot more than what your upfront loan commission would be for the same purchase.
When you get the referral alliance recipe right you will not only increase your income but will also position yourself to add value to your clients in the process, which can easily lead to more referrals from them.
Property referral benefits
Not only can you earn extra income as a result of referrals from your property specialist referral partner – another benefit is that you get to keep your hard-earned upfront and trail commissions to yourself. In recent years, real estate agents and other loan referral sources have increasingly asked for a share of your commissions in exchange for referring property buyers to you for their loans. Prior to starting Latte Property, I had 10 years’ experience as a mortgage broker, so I know firsthand that you work too hard to be sharing your upfront and trail commissions with real estate agents and other introducers. You will find that reputable property providers will be happy for you to keep 100 per cent of your loan commissions in return for receiving property buyer referrals from you.
The extra income stream from property referrals will give you the option of reducing your working hours. Think about it: if each property referral was to deliver double your upfront loan commission, you could certainly afford to take your foot off the gas or set yourself up for an earlier retirement.
Extra income
Aligning yourself with a quality property specialist will produce extra income from several areas:
• Finance referrals from your property specialist
• Property sales from joint seminars
• Finance referrals from joint seminars
• Finance referrals from joint email marketing campaigns
• Property sales from joint email marketing efforts
• Increased brand exposure from joint events such as seminars, workshops, info nights and webinars
Property referrals income
Some brokers are quite content with the commissions they receive from the extra loans written as result of having a referral partnership with a new property provider. Brokers also have further opportunities to receive extra income when referring buyers to property providers. This can easily amount to double what your upfront loan commission would be. Be wary of property providers that are offering really high commissions, though, as this is a sure sign that the property is overpriced and your client will be paying too much for it.
Don’t like property commissions?
There are plenty of brokers, accountants and other referral sources that are holding back on referring property buyers, as they don’t want to receive commissions from property specialists.
Not wanting commissions for referrals is fine. However, holding back on making the referrals is a disservice to your clients that would benefit from buying new property. There are plenty of benefits to your clients and to yourself for making referrals without receiving commissions.
At Latte Property, we have solved this potential roadblock by introducing our own property clients back to the mortgage broker that is sending their property buyer clients to us. This is a three-way win without the need for the exchange of commissions.
Another solution is to have any property commissions rebated to your client, which will definitely deliver a ‘wow factor’ to them and enhance your reputation with your client.
Remember, once your clients have decided to buy new property they will purchase from someone, so make sure it is from one of your valued referral partners to avoid the risk of losing them, their finance needs and the property sale to another provider.
Any questions? Ask Darryl here.
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